Spotlight Report

Boost Tax Compliance Capabilities and Visibility with SAP S/4HANA

Is tax a top priority?

As your organization begins SAP S/4HANA migration, is tax compliance a priority? In our latest Spotlight Report, created in partnership with Americas’  SAP Users’ Group (ASUG), “Boost Tax Compliance Capabilities and Visibility with SAP S/4HANA” we make the case for including tax solutions at the very beginning of your planning process. Migrating to S/4HANA can become a big and complicated process for organizations, so it is important to plan accordingly.

Why you need to include tax solutions

In the world of tax, compliance is everything. SAP S/4HANA allows for organizations to view high-level reports and perform in-depth analysis on a line-item level. Increasing visibility is a big deal, and allows for you to identify hardware and software issues before they cause harm. Accounting for tax early in the upgrade process ensures that your organization is prepared for the challenges of modern tax compliance on an international scale. Companies operating on a multi-national scale have a great need for the enhanced visibility and reporting capabilities offered by S/4HANA.

Why tax and IT must work together

Tax process automation is one of the most helpful attributes of S/4HANA, so ensuring that it is set up correctly the first time is critical. Failing to do so is costly and time consuming, so it’s best to get it done the correct way initially. Departments working without automatic processes may find themselves creating manual workarounds, which can lead to compliance risks and painful audits. Instead, focusing on an active relationship between tax and IT allows for the communication of potential impacts due to SAP S/4HANA migration before they happen.  

Why you should talk to Sovos 

Sovos understands that indirect tax compliance is difficult to navigate.This report highlights at which point in the SAP S/4HANA migration process SAP customers are including tax. 

This Spotlight Report presents an overview of how businesses are planning to avoid integration and compliance issues by factoring tax early on in the SAP S/4HANA migration process.

By partnering IT and tax departments, your organization can enjoy complete visibility into complex tax processes. Complete visibility into tax processes and how they connect to SAP systems is a resource that allows companies to have their needs met in both the short and long term.

Download the report now and connect with one of our experts on how to prioritize tax in your integration.

The State of Indirect Tax Compliance Among SAP Customers

Is a Move to the Cloud in Your Future?

Indirect tax compliance can be a behemoth and cause unnecessary strain on IT department resources. Is your company’s digital transformation keeping up with the governments in the locations  you do business? Your tax solutions need to be continuous and automated to adapt the moment regulations change. For multinational organizations, this means around the clock monitoring. In our latest Spotlight Report, created in partnership with Americas’  SAP Users’ Group (ASUG), “The State of Indirect Tax Compliance Among SAP Customers” we explore how SAP customers are planning to modernize their indirect tax operations. 

Indirect tax is an essential financial driver for any organization. It can also be a high-maintenance activity for IT departments. By tapping into the power of the cloud, you can ensure your business is charging, collecting and remitting the proper level of tax, all while dramatically reducing the burden placed on IT. Updating your indirect tax processes is a great way to streamline operations. In this report, we dive deeper into the indirect tax compliance landscape, and break down how SAP customers approach compliance, whether it be on premise or in the cloud.

Why this matters

Organizations are determining that manual processes won’t cut it when it comes to indirect tax. Poor system integrations, slow updates, and compliance issues are holding companies back from staying up to date with the modern ERP landscape. When you’re ready to make the change to the cloud, it’s important to choose a partner with the track record of producing minimal disruption to your business and operations.

Why you should talk to Sovos

Sovos understands that indirect tax compliance is difficult for SAP customers. Keeping up with hardware issues, manual updates and integration issues puts undue pressure on your organization. This report discusses how SAP customers are planning for the future to reduce indirect tax compliance headaches, which in turn helps you garner a better understanding of the current state of the industry. 

This Spotlight Report provides an overview of how businesses are preparing for the continuing ERP evolution. By partnering with a third-party vendor, organizations can more easily overcome SAP-related challenges. And if something does go awry, a third-party vendor can be by your side, providing the support you need when you need it.

Are you ready to modernize your indirect tax operations? Download your complimentary copy of the report now and be sure to connect with our team with any questions you’re left with.

Turkey’s E-Transformation Solutions and Benefits

The journey of e-transformation and tax digitization for companies in Turkey began in 2012 with the e-ledger application being made compulsory for multiple sectors.  

Over the years, the scope of e-transformation has expanded to include different e-documents. Compulsory e-document use was further expanded in terms of both application and taxpayers with the General Communique No. 509 published by the Turkish Revenue Administration (TRA) on October 19, 2019. And so 2020 became the year of e-transformation in Turkey. In 2021, with the effect of various regulations, the number of companies entering the e-transformation process has further increased. 

In addition to the solutions provided to switch companies to compulsory e-document use, e-transformation applications provide many advantages for companies. Benefits include:

E-invoice: 

  • Ability to monitor all your e-invoices (inbound and outbound) in one place (desktop and mobile) via a user-friendly cloud portal. 
  • Remove manual processes and their associated costs such as hardware, ink and delivery, to focus on business-critical tasks.  
  • Complete government integration. 
  • Quick issuing and archiving of e-invoices in digital environment saves time and storage. 
  • Invoices are sent electronically so cannot get lost in transit. 
  • Accelerated collection track and control process. 
  • E-invoice is eco-friendly; printing paper invoice is eliminated. 

E-arşiv invoice: 

  • Reduces printing and shipping costs and completely eliminates archiving costs. 
  • Issuing invoices is faster. Reporting is made easier and more detailed. 
  • All transactional processes are faster, eliminating the operational workload. 
  • Easy and fast access to previous invoices. 
  • Improved security over paper processes as digitally sent and stored. 
  • Improved sustainability due to reduced paper use.  

E-ledger: 

  • Ledgers are stored securely via digital methods. 
  • Provides quick access to accurate data for audit processes. 
  • Reduces cost and time of notarization processes. 
  • Increased compliance with tax processes. 
  • Forms a legal basis for the economy and develops trust in companies. 

E-delivery note: 

  • Reduces paper and document storage costs. 
  • Facilitates waybill track and control and eliminates invoice losses and resubmission. 
  • Enables shorter document delivery times. 
  • Provides quick reconciliation. 
  • Facilitates reporting processes. 
  • Works with e-invoice and e-arşiv invoice processes.

Why Sovos? 

Sovos was built to solve the complexities of the digital transformation of tax with complete, connected offerings for tax determination, continuous transaction control compliance, tax reporting and more.  

Sovos, the world’s leading global software provider protects businesses from the modern tax burden and risk, allows you to concentrate more on your core activities while providing complete future-proof solutions for modern tax compliance with its teams in Europe, North America, and Latin America. 

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Easier VAT Reporting with Sovos Advanced Periodic Reporting

Periodic VAT reporting takes time. Data must be accurate, its format must be correct, deadlines cannot be missed and additionally the frequency of submissions puts significant pressure on teams responsible for VAT reporting.

Add to these challenges frequent changes in regulation, cross-border complexities and also the fact that no single jurisdiction operates the same, and it’s clear that that your business would benefit from automating and centralising periodic VAT reporting.

This infographic explains how both global and multinational companies can meet their periodic VAT reporting obligations through the power of technology with Sovos Advanced Periodic Reporting (APR).

Sovos APR can help with:

  • Centralising your tax filing and reporting through a single system
  • Improving the quality of VAT returns and declarations
  • Validating data integrity
  • Meeting periodic VAT reporting obligations and deadlines
  • Simplifying how you work with greater visibility and dashboards

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The many benefits of Sovos APR

Lower total cost of VAT compliance

Manual tasks can be automated, processes are easily standardised, and you can also reduce your reliance on outsourcing providers. These advantages, coupled with the ability to lower management costs associated with keeping systems up-to-date, quickly add up.

Greater operational efficiency

Tax professionals need the right resources (both people and tools) at the right time. Sovos APR ensures you can continuously safeguard indirect tax compliance in a way that above all saves time and enhances accuracy. As a result, you can redeploy resources to focus on more strategic deliverables.

Seamless integration with VAT Compliance Solutions Suite

Sovos APR is an integral part of a fully scalable solution suite that addresses all VAT compliance obligations, including e-invoicing and e-archiving. Solve tax for good at a scale that suits your specific business.

What else does Sovos APR offer?

Need more detail on Sovos APR? This infographic dives deep into the solution and also how it helps tax professionals solve their periodic VAT reporting challenges.

This includes:

  • Global outlook – Dedicated reports for a growing number of countries; whilst 60+ countries are monitored for regulatory changes.
  • Universal templates – Additional proprietary reports can also be created to facilitate VAT analysis in 208 jurisdictions, both national and subnational
  • Expert driven – Our pedigree of regulatory research has kept customers compliant for nearly two decades. This knowledge feeds directly into Sovos APR.
  • Always up to date – Full, in-house compliance monitoring and maintenance by the Sovos regulatory team informs how our solution evolves.

Read the infographic now to learn how Sovos APR can:

  • Save you time while providing complete visibility of your filing obligations
  • Build an end-to-end approach that scales with your business
  • Ease the burden of tracking indirect tax regulatory changes
  • Reduce total cost of VAT compliance
  • Enhance decision-making and also maximise operational efficiency

Sovos APR lets you efficiently review everything from a centralised platform. Stay on top of any regulatory changes while remaining compliant both now and in the future.

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A Guide to the E-invoicing Universe in Mexico

What do all the Spanish words and phrases associated with Mexican e-invoicing mean, and what do companies doing business there need to know as they navigate around them? Here is a map to the Mexican e-invoicing universe.

Want to know more? Learn how Sovos has more than a decade of experience helping companies navigate Mexican e-invoicing mandates.

 

Infographic: State 1099 Reporting Deadlines

By far, the biggest challenge facing organizations during 1099 reporting season this year was state reporting. With states tightening deadlines and multiple jurisdictions and reporting thresholds to deal with, Sovos customers found state reporting more complex than any other element of reporting season.

This updated infographic shows why. The map shows 1099 reporting deadlines by earliest deadline per state. In just a few years, the vast majority of 1099 first deadlines have shifted from March to January. Combine that shift with changing thresholds for 1099-K forms and other state-specific policies, and it is clear why state reporting has become such a challenge and will likely continue to be.

 

With reporting periods shrinking, organizations need to centralize and automate reporting processes in order to maximize efficiency, ensure compliance and avoid financial penalties.
Find out how Sovos can help.

Global Taxation is

Going Digital

Here's How to Prepare

An underappreciated revolution--the shift to digital taxation--is underway. More and more countries are requiring businesses to comply with a new model of tax reporting and compliance.

This is the digital transformation of tax: a climate in which global tax authorities demand more e-invoicing and e-reporting—which will likely lead to more e-assessments and e-audits. Here, we explore the transformation and offer a clear path forward for business and technology leaders to tackle its challenges and leverage opportunities.

Section-Dividers-FI-01

To date, about 30 countries have implemented some form of digital tax reporting or collection requirement—and many of those early movers are developing nations such as Brazil and Mexico. As Intra-European Organisation of Tax Administrations Executive Secretary Miguel Silva Pinto explains, a primary motivator moving developing countries toward digital processes is that “digitization is a highly effective means of countering fraud.”

But going forward, more nations—including developed economies—will up the ante on digital reporting requirements. Not only will the information collected swell to include more intimate details around corporate operations, it will also shift from taxpayer-submitted to government-issued returns.

“The rise of digital taxation turns the traditional tax collector-taxpayer relationship on its head,” says Carolyn Bailey, partner at Ernst & Young’s Tax Services. In a Forbes Insights survey of 250+ senior executives, majorities of cross-industry finance, tax and IT leaders report experiencing a variety of trends in digital taxation.

Companies Face New Requirements

80%
of leaders experience
localization
which requires that tax software and reporting processes meet local regulations
64%
of leaders experience
e-Reporting
which replaces manual periodic form filing of summary information to online transmission of files with transaction data
64%
of leaders experience
e-Accounting
which requires businesses to transmit entire accounting ledgers to the tax administration or maintain accounts hosted by the tax administration based on their own transaction data
56%
of leaders experience
e-Invoicing
which mandates the use of e-invoices and real-time submission to the tax administration
Previous
Next
Section-Dividers-FI-02

The switch to digital taxation introduces a variety of challenges, risks and costs: some are immediate and tactical, while others are longer-term and strategic.

The Challenge of Digital Taxation

Transparency

Tax authorities will have a clearer window into a company’s tax operations

Smarter Tools

Advanced analytics and AI will monitor consistency, track compliance and more precisely choose audit targets

Scrutiny

This unprecedented visibility means more intrusive controls, higher income assessments and the potential for tax controversy

Short-term Challenges

Initially, companies will need to tweak or even overhaul their invoicing, payment, enterprise resource planning (ERP) or other financial systems. Challenges will multiply as individual jurisdictions implement and continuously update digital requirements and more nations join the fray.

Meeting multiple requirements on short timelines across a growing list of jurisdictions can lead to a patchwork of solutions amid a diversion of scarce local IT and tax resources. But failure to achieve compliance in real-time reporting of transactions impacting VAT and broader taxation leads to fines, business disruption and damaged reputations.

Long-term Challenges

Digitization of taxation is part of an even larger trend—the shift to sharing more intimate information with tax authorities, a process accelerated by the OECD’s Base Erosion and Profit Shifting initiative (BEPS).

Digitization of so much data “becomes tax disclosure on steroids,” says Bailey. Soon enough, there will be jurisdictions applying advanced analytics and AI to scrutinize enterprises in search of evidence that can be used to levy higher assessments.

“More nations will be collecting massive amounts of information about not only individual companies, but entire industries, giving authorities an unprecedented window into operations and profitability.

Carolyn Bailey

Partner, EY Tax Services
Digital Tax Administration Services

Section-Dividers-FI-03

The path forward can be daunting for business leaders: 57% say that responding to digital taxation represents a significant challenge for their company. Forbes Insights research findings and Bailey’s guidance can help business leaders create an explicit strategy.

Your Transformation Agenda

Take Inventory

“Take inventory of where you’re operating and where these requirements are being introduced,” recommends Bailey. It’s essential “to gain an understanding of the deadlines and to find out about penalties and enforcement.” Inventories should also take into account future investments.

Centralize & Standardize

83% of surveyed executives say they will be taking steps to move global taxation into a more centralized model. Greater centralization will eliminate the need for local IT patches and workarounds, in turn creating “opportunity for companies to achieve greater standardization,” says Bailey.

Streamline

The shift to digital processes—and away from manual, paper-based and often error-prone single-country systems—presents an opportunity to reduce costs while improving quality and efficiency.

Outsource

Executives are seeking assistance from specialists with expertise in digital VAT/GST operations around the world, as well as working more closely with ERP and other financial software providers. Most will be hiring additional IT and tax staff at headquarters and locally.

Collaborate

Perhaps the greatest necessity is to unite leaders across functions and processes. This begins with IT and tax, but also includes the broader finance, operations and strategic planning teams.

Turn Risks Into Opportunity

Synchronize Solutions

A comprehensive response is essential. Many companies need country-specific e-invoicing and related tax solutions, which requires a more systematic approach. And as tax authorities leverage their increased insight, companies must also prepare for more intrusive tax administration controls, tax controversy and intense scrutiny on transfer pricing. A coordinated response linking core business processes and ERP systems with new interfaces and improved solutions for reporting and compliance can significantly reduce costs and risks.

Dig Into Data

Greater standardization of information exchanged with tax administration platforms leads to vast new caches of mineable data. Tools like AI could help sift through detailed cost, revenue and related operational data, leading to more optimal decisions and strategies. Companies can also leverage the same data and tools to proactively scour their business models for tax efficiency and compliance—allowing for improved tax planning, contemporaneous documentation and justification of transfer pricing policies. 

Overall, the trend is clear and unavoidable: taxation is going digital. The best way forward is to use this as an opportunity to improve business outcomes.

Brazil: Electronic Invoicing and Reporting Requirements

In 2008, Brazil adopted a clearance electronic invoicing model in which the country’s tax authority must receive and clear an invoice before a supplier can issue it to a payer. More than a decade later, the Brazilian tax administration’s digitization has evolved so much that other tax administrations call Brazil the Google of fiscal goods. 

Current regulations include electronic invoices for: supplies of goods (NF-e), services (NFS-e), transport services (CT-e), freight (MDF-e), SPED, REINF and, more recently, for the supply of electricity (NF3e). 

This document provides an overview of the mandates and regulations in Brazil.

Mexico: Electronic Invoicing and Reporting Requirements

Mexico is a pioneer in electronic invoicing and VAT enforcement, having begun its digitization journey in 2010. Today, Mexico has one of the most technologically advanced tax administrations in the world. Companies unaware of or unprepared for Mexican e-invoicing mandates could face significant fines and penalties, along with supply-chain disruptions and cash-flow issues. This document provides an overview of mandates and regulations in Mexico.

Growing Pains: Tax Information Reporting Obstacles

Companies operating in the technology space often see rapid growth. However, leaders may be blindsided by multiple Tax Information Reporting obstacles that can cripple their progress.

See the infographic below to learn more.

Cyber Monday 2019 – Sales Tax Preparation Key to Success

Cyber Monday 2019 is anticipated to be one of the most challenging to date for ecommerce and finance teams. More spending, in fewer days, and many more states imposing economic nexus, may subject more online retailers to sales or use tax collection and remittance responsibilities.

infographic

Do 2021 Sales Tax Holidays Impact Your Products?

Sales tax holidays – or a tax free weekend, depending on where you live – are welcome reprieves for consumers, looking to save money when they can. But retailers’ tax departments might not be as excited. 

It takes careful monitoring of all the jurisdictions where businesses have sales, and an extra complexity has been added with economic nexus requirements following South Dakota v. Wayfair, Inc. Accurately applying sales tax before, during and after a sales tax holiday can take a lot of time, energy and resources. This can be especially tricky as local areas can send a notification of participation just days before a sales tax holiday begins. 

Online retailers with a diverse product portfolio, and with sales spanning the country, will truly feel the extra burden that can come with sales tax holidays. For example, there is no uniformity in state-to-state exemptions. If and when a holiday has a similar focus (e.g. “Back to School”), online retailers must familiarize themselves with individual state rules to stay compliant.

But which states have a sales tax holiday? What products are eligible for a holiday exemption?

Alabama
Severe weather preparedness (February 26-28)
Back to School (July 16-18)

Arkansas
Back to School, August 7-8

Connecticut
Clothing and footwear, August 15-21

Florida
Disaster preparedness (May 28-June 6)
Freedom Week (July 1-7)
Back to School (July 31-August 8)  

Iowa
Clothing and footwear (August 6-7)

Louisiana
Second Amendment (September 4-6)

Massachusetts
All-Inclusive (August 14-15)

Maryland
Energy Star (February 13-15)
Clothing and footwear (August 8-14)

Mississippi
Back to school (July 30-31)
Second Amendment (August 27-29)

Missouri
Energy Star (April 19-25)
Clothing and footwear (August 6-8)

New Mexico
Back to school (August 6-8)

Ohio
Back to school (August 6-8)

Oklahoma
Clothing and footwear (August 6-8)

Puerto Rico
School supplies (January 8-9)
Back to school (July TBD)

South Carolina
Back to school (August 6-8)

Tennessee
Gun Safety (July 1, 2021 – June 30, 2022)
Back to school (July 30-August 1)
Prepared Food (July 30-August 5) 

Texas
Emergency preparedness (April 24-26)
Energy Star & WaterSense (May 29-31)
Back to school (August 6-8)

Virginia
Back to school, Emergency Preparedness and Energy (August 6-8)

West Virginia
Back to school (July 30 – August 2)

Sales tax holidays can be a headache for retailers, regardless of when they occur. Many tax departments file sales taxes monthly or quarterly, though some may file annually or semiannually. Retailers’ tax and IT departments must remain vigilant and properly adjust their systems to correctly charge tax on every transaction. They will also need to account for changes should they be audited later. Retailers need to be able to update systems quickly, efficiently and accurately, ensuring that the correct sales tax holiday rates are only in place when they should be. 

Sales associates also have to know sales tax holiday details so they can process each transaction correctly. Overall, sales tax holidays can help consumers save, but cost retailers a lot of time and energy in ensuring taxes are accurately charged. Having an automated sales and use tax system can be extremely beneficial in helping to manage these complexities.

Incoterms® - VAT Implications for Cross-Border Trade

Find out what Incoterms are and how they affect VAT in the EU in our latest infographic.

Cross-border businesses need to ensure VAT compliance to meet the requirements of each country. The complexity of international VAT affects different elements of the supply chain. The potential risks, fines and costs can cause headaches for businesses.

VAT determination for goods requires an understanding of when goods move across a border and also if the supplier or customer is responsible for this movement.

So complications around who is responsible for VAT can arise. The International Chamber of Commerce (ICC) introduced a set of international commercial terms – otherwise known as Incoterms. This set of internationally recognised rules define the responsibilities of buyers and sellers in international transactions.

The 11 Incoterms define who is responsible for each element of the sale of goods. This includes documentation and customs clearance, shipment, and insurance.

In a Post-Brexit environment, businesses with EU and UK trade no longer trade intra-EU and are therefore subject to import and export rules. Contracts for the supply of goods within the EU usually mention Incoterms. Although they don’t determine the correct VAT treatment of a movement of goods, they’re helpful in understanding the intentions and responsibilities of both buyers and sellers.

Failure to understand how VAT relates to Incoterms within international contracts can cause delivery delays, possible penalties and interest for late registration and late payment of VAT as a result.

Our Incoterms infographic provides insight into the VAT implications for cross-border business and covers topics including:

  • What are Incoterms?
  • Which Incoterms affect VAT in the EU
  • In addition to examples of Ex Works (EXW) and Delivered Duty Paid (DDP) scenarios

There are obligations, costs and risk associated with the transport of goods and who is responsible for VAT at each stage. Ex Works and Delivered Duty Paid apply to all modes of transport – road, rail, air and sea.

Compliance peace of mind with a complete, global VAT Managed Service from Sovos

Whatever your VAT implications, Sovos has the expertise to help you navigate Incoterms and the complexities of cross-border tax obligations. Our VAT Managed Services ease your compliance workload while mitigating risk wherever you operate today. In addition, we ensure you’re ready to handle the VAT requirements in the markets you intend to lead tomorrow.

IPT Compliance – Taking Care of the Detail so You Don’t Have To

Insurance premium tax (IPT) is a complex thing to deal with. Get it wrong and the implications can be problematic.

At Sovos we take care of the detail, giving you the complete peace of mind you need. We are compliance specialists and we solve tax for good. IPT is one of our specialisms, so we know it well. We’ve been in it from the start and, as a result, many of the world’s largest insurers trust us with their IPT compliance business.

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Trade effectively and without problems

As regulations change and become more complicated throughout Europe, you need the certainty that you can trade effectively and without problems. That’s what we provide. Our team of tax compliance specialists cover over 100 countries and know the ins and outs of each jurisdiction. It’s this depth and accuracy of knowledge that ensures you have the right level of compliance, are only paying what you need to pay, while having the latest information to always keep you aware of changes and stay ahead of the curve.

Compliance peace of mind

Our leading software gives you the freedom to achieve this yourself. It integrates seamlessly into your existing system and is easy to use. Simplify the preparation of IPT and parafiscal returns and use accurate, real-time rates and calculations to help you reduce both the amount of errors and reprocessing needed.

Or, if you prefer, we can manage it all for you, from registration through to fiscal representation. Either way, we’re always here for you to make the process simple and smooth no matter what the future holds. And because our team works together in the same location and knows how different tax authorities prefer to operate, you can be sure that whether you’re trading in a new jurisdiction, or across multiple different jurisdictions, the process will be fast and free from any niggles, big or small.

We’re a market leader for IPT compliance in Europe with award winning solutions.

  • IPT Determination – calculate and apply global IPT rates at quotation
  • IPT Reporting – generate returns needed for IPT compliance on a global basis
  • Full managed service solution
  • Fiscal representation
  • Consultancy
  • Bespoke approach to meet your changing business needs

Trusted by Fortune 500 companies

We actively work with 80% of insurers across Europe including many of the top 100 UK insurers, FTSE Eurotop 100, in addition to Fortune Global 500 companies.

As the challenges and complexities of IPT compliance continue to rise, more companies are realising the benefits of taking both a holistic and global approach. Sovos was built to solve the complexities of the digital transformation of tax with complete connected offerings for tax determination, and tax reporting and more.

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Blending Human Expertise and Software - VAT Managed Services

Companies around the world face growing VAT compliance obligations. Governments globally continue to look for ways to prevent fraud, increase revenue and ultimately close VAT gaps. It’s a challenge and especially as VAT requirements can be complex and fragmented across different markets. European Union countries alone lost an estimated €140 billion in VAT revenues in 2018. So it’s easy to see why governments are taking steps to reduce this.

Keeping up with VAT rates and reporting changes is daunting. For multinational companies, that complexity only intensifies. If you trade across multiple borders the associated workloads also increase.  For these reasons, companies need to ensure they have a robust compliance continuity plan in place to ensure their VAT compliance obligations are met wherever they operate.

The cost of noncompliance can be high. And errors can be caused by various reasons. These include late filings, using incorrect tax rates, misinterpretation of the regulations or simply due to human error.  Whatever the cause, the repercussions can be costly leading to loss of VAT deductions, invasive and time consuming audits and other financial penalties and reputational damage.

As the challenges and complexities of VAT compliance continue to rise, more companies are realising the benefits of embracing a managed service approach to all or part of their VAT compliance obligations.

Download the Product Brochure.

Technology enabled VAT Managed Services

Ease your compliance workload reducing risk wherever you trade

Sovos VAT Managed Services is a blend of human expertise and software. Our multi-lingual team of VAT experts use our proprietary software which is updated as and when VAT regulations change. Our team is your team. In addition, our global regulatory specialists monitor all regulatory changes, so you don’t have to. Allowing you more time to focus on your business.

Sovos VAT Managed Services takes care of your compliance for both periodic and continuous reporting obligations. This applies across all markets where you operate today and for the markets you intend to dominate tomorrow. A dashboard provides you with full visibility of the status of each of your filings. And, at a later date, if your strategy changes and you want to bring your VAT compliance function back in-house, that’s not a problem. Your partnership with us as a global tax technology provider is flexible. So this means you can readily switch to a fully insourced software solution.

VAT legislation is complex and continues to change. Businesses need the support of both managed services and technology to help them meet their VAT compliance obligations and to allow them to continue to trade with confidence. Appointing Sovos with our blend of human expertise and technology empowers companies to comply with and face the changing VAT landscape head-on.

Keeping up with VAT rates and reporting changes is daunting. For multinational companies, that complexity only intensifies. If you trade across multiple borders the associated workloads also increase.  For these reasons, companies need to ensure they have a robust compliance continuity plan in place to ensure their VAT compliance obligations are met wherever they operate.

The cost of noncompliance can be high. And errors can be caused by various reasons. These include late filings, using incorrect tax rates, misinterpretation of the regulations or simply due to human error.  Whatever the cause, the repercussions can be costly leading to loss of VAT deductions, invasive and time consuming audits and other financial penalties and reputational damage.

As the challenges and complexities of VAT compliance continue to rise, more companies are realising the benefits of embracing a managed service approach to all or part of their VAT compliance obligations.

Ecommerce Sales Tax: 3 Tips for Success in Your New Online Channel

Customers continue to seek out online options, pushing numerous types of businesses to implement ecommerce channels. But how can organizations ensure that their sales tax processes continue to run smoothly? Whether a business is just starting out or is looking to add ecommerce options, there are critical steps to take that will ensure sales tax compliance, happy customers and continued business growth.

Get Ready for the 2021 EU E-Commerce VAT Package

Download our infographic to understand the upcoming changes.

If you’re an EU business with B2C sales in other EU Member States or based outside the EU with B2C sales to the EU, 1 July 2021 will bring significant change.

The EU VAT e-Commerce Package aims to simplify cross-border trade and ensure VAT is charged correctly on cross-border B2C sales.

The change to the Distance Selling threshold means that VAT will be immediately due in the Member State of consumption and this could lead to a requirement for several additional VAT registrations. This will add cost and complexity to businesses and so the package introduces a One Stop Shop (OSS) to ease the burden.

OSS has many benefits but it’s not simple.

It’s important that companies prepare and make informed decisions now as to whether or not OSS is right for their business.

Our One Stop Shop infographic will help you understand the key changes the new EU VAT e-Commerce Package will bring including:

·       Union OSS, Non-Union OSS and Import OSS

·       OSS record-keeping requirements

·       Excise goods eligibility

·       Place of supply rules

·       Changes to distance selling thresholds

·       Marketplace liability

·       Low value consignment relief  

·       How to prepare for OSS

·       The consequences of OSS noncompliance

As part of the changes, it’s important to understand which OSS applies to your business to ensure VAT compliance. Requirements vary for EU and non-EU businesses, for sales D2C or via an online marketplace depending on the final steps of the supply chain.

The three variations of OSS are:

·       Union OSS

·       Non-Union OSS

·       Import OSS (IOSS)

As OSS isn’t currently compulsory it’s better to understand internal timeframes and implement OSS when your business is ready, rather than try and rush to meet the 1 July 2021 introduction date.

The main choice businesses with total intra-community sales of >€10,000 need to make is whether to use OSS or register in every Member State where they trade.

Download our infographic to understand the upcoming changes and how they could affect your business.

Sovos can help you prepare for OSS

Implementing the changes required to comply with the 2021 EU e-Commerce VAT Package into your ERP system could take significant time and resources. Sovos can help ease the tax burden and help you prepare for and understand the right solution for your business.

Our large advisory team can help you navigate the complexities of modern VAT compliance.

5 Sales and Use Tax Questions Every Manufacturer Must Ask

Manufacturers face increasingly complex sales and use tax requirements, but are not always aware of what challenges lay ahead in the short- and long-term. Knowing the right questions to ask is an essential first step toward understanding how sales tax developments impact the manufacturing industry.